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ROI of Email Marketing

ROI of Email Marketing

When it comes to communication, email marketing is a cost-effective solution that is known to produce a phenomenal result. It gives you the power to reach the potential and existing customers most efficiently. There’s plenty of research reports stating the benefits of email marketing campaigns, where improved ROI being the most crucial one.

The Infographic given here explains the importance of email marketing and its capability to increase ROI. Please take a look at it.

Importance of Email Marketing by Numbers

Email is the most powerful medium for communication, as it keeps the business flowing.

  • 92% of people use email for marketing than social media.
  • Email’s average order value is at least 3x more than social media.
  • Email is 40x more effective at lead generation than Facebook or Twitter.


Return on Investment Has Always Been High!

  • ROI through email marketing is as high as 4400%, which is equivalent to $44 spent on every campaign.
  • Email’s ROI was 28.5% compared to 7% of the direct mail strategy.

How to Calculate ROI on Email Marketing?


Email marketing ROI is a performance measure used by marketers to assess the effectiveness of their investment on campaigns.

Formula to calculate ROI:

Gained – spent / spent = ROI

Example: ($10,000 – $4500) / $4500 = 122.22%


How to Increase Email Marketing ROI?


1. Personalize your Messages

Personalize your email to make it more relevant for individual users.

  • An email with personalization drive 6x more transaction.
  • On average, 40% sales increase when marketers use personalized emails.
  • Segmented and personalized emails produce 58% of all revenue.
  • Personalized email campaign generates a median ROI of 122%.


2. Invest in Automation

Implementing automation should be your priority to stay afloat in the market.

  • 80% of marketers using automation saw a 77% increase in conversion.
  • Email with automation has increased sales by 74%.
  • Automated emails receive 119% more clicks than non-automated ones.
  • Sending automated email helps firms reuse 61% more content than others.


3. Use Double Opt-In

Double opt-in offers you with better engagement in the form of high open and click-through rates.

  • 5% of email marketers prefer double opt-in.
  • 4 out of 5 welcome emails are generally double opt-ins.
  • Use double opt-in to increase ROI by 20%.
  • 80% of sites using double opt-ins saw improvement in the health of their list.


4. Embed Videos

Adding videos to your email increases conversion and exposure quickly.

  • 50% of marketers add videos in their email.
  • Emails with the word ‘video’ in the subject line saw 7% more open-rate.
  • Click-rates are increased by 22% by adding videos.
  • Videos under 2 minutes gets the maximum engagement.


5. Include Call-to-Action (CTA)

Adding CTA to your website can increase traffic and take more subscribers to your site.

  • 45% of marketers add call-to-action in their emails.
  • Emails with a single CTA increased clicks by 371%.
  • Personalized CTA buttons convert 202% better than other version.
  • Removing the clutter around CTAs raised conversion by 232%.


6. Perform A/B Testing

Optimize your content using A/B testing and increase your email marketing ROI.

  • 89% of businesses in US conduct A/B tests on their email campaigns.
  • 39% of companies often test an email’s subject line.
  • It is possible to reach 567% or more conversion with A/B testing.
  • Segmented A/B drives 30% more conversions.



Email Marketing is definitely your perfect bet for business growth. It can drive sales, improve brand awareness and also revenue in a short period.


  • Emarsys
  • McKinsey
  • DMA
  • Experian
  • Litmus
  • Epsilon
  • eMarketer
  • The Lenskold and Pedowitz Group
  • Sumo
  • Wistia
  • Campaign Monitor
  • WordStream
  • com
  • HubSpot
  • Open Mile
  • Smart insights
  • Marketing Land

Diana Morris

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